If the legal incidence of a tax is entirely on suppliers,then the tax will have no economic effect on demanders.

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Quizplus · Accepted Answer

The legal incidence of a tax refers to who is legally obligated to pay the tax, but the economic incidence, or burden, of a tax can be shared between suppliers and demanders depending on the elasticities of supply and demand. Even if suppliers are legally responsible for the tax, prices for consumers can still increase, affecting demand.

If the Legal Incidence of a Tax Is Entirely on Suppliers,then